Questions asked and answered by MOOSH
- Q:
Share repurchase question. If it's reported that company XYZ bought back X
amount of shares, is that net of share dilution caused by stock options
exercised?
In other words, if company XYZ buys back 100,000 shares but exercises options
worth 90,000, isn't the net effect just 10,000? -
Asked by moosh -
1 months ago -
1 answers -
31 views
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A: You are correct. Quite often buybacks are just enough to cover the options being exercised
... so the share float isn't really being reduced by a significant amount.
That's not necessarily a bad thing. Options can be an economical way for growing companies
to reward employees. And the company is looking out for shareholders if they keep the
dilution to a minimum. more - Post your own answer
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